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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: Joey Smith who wrote (38437)10/30/1997 6:35:00 PM
From: Reginald Middleton  Read Replies (1) | Respond to of 186894
 
<I guess the good thing about Intel being ridiculously low is that Intel can now buy it back very cheap.>

It has always been my belief that stock buy backs do not truly add value to a company over the long term. Unless the purchases are to fund compensation plans, one should beware of the company that purchases excessive stock, for that is an indicator that mgmt. can not find an internal or external investment that produces a yield greater thatn its own cost of capital.



To: Joey Smith who wrote (38437)10/30/1997 8:58:00 PM
From: mauser96  Read Replies (1) | Respond to of 186894
 
So far Intel share repurchase has just covered their generous employee stock option plan so it doesn't do a lot for the stock price. Intel should use their huge cash hoard to buy back stock only if the anticipated return on the stock purchase is greater than the return they could get by putting the money back in the business. At a price near 70 that might be the case. Does Intel really need that much cash for future business needs?